1997 - 1998



On behalf of the Board of Directors, it gives me immense pleasure in welcoming you all to this 22nd Annual General Meeting of the Company.

Your Company has always believed that there are two factors that act as differentiators between companies that achieve and those that don’t. Vision And People. The Company with better technology and vision gains the edge and the motivated workforce retains that edge. This philosophy has remained the driving force of your Organisation and today within the 22nd year of its existence has earned for itself the distinction of one of the successful Power Sector Utilities in the Public Sector operating in this difficult region of our country.

While power is the sine-qua-non for taking the country to a international economic standard, the experience gained by us had prepared us adequately to meet the challenges of the new beckoning century in the changing environment of economics coupled with the ever increasing demands in the Power Sector and obviously our own internal inbuilt shortcomings.

Through the Looking Glass :

The year that was has truly become a story of achievement of a commendable mearure of success in the fulfilment of various assignments and targets set before your Organisation on which my Directors’ will read for your consideration and adoption.

This year we had not only made a net profit of Rs.26.27 Crores (the highest so far, in a year) against that of Rs.3.38 Crores of the previous year but our net sales has increased to Rs.177.98 Crores against that of Rs.132.88 Crores of the previous year. This year also your Company is proposing to pay a dividend of Rs.2.00 Crores against that of Rs.1.00 Crore paid last year. There have been further increase in the Authorised Share Capital of your Company by an amount of Rs.1000 Crores to a total of Rs.2500 Crores, which is a clear indication of the growth and the confidence of the shareholders on the capabilities of your Company.

In May and July, 1997, 2 units of 50 MW each of Kopili H.E. Project – 1st Stage Extn. were successfully put to the grid. Subsequently, in April 1998, 3 units and in August 1998, the 4th unit of

21 MW each of Agartala Gas Turbine Project were put to the grid earning commendation from the authorities for these splendid performance in achieving the targets.

Future Mission :

From our perspective, the fundamental trends in shaping the energy environment remain unchanged though there have been revolutionary changes in certain regulations and concepts in this vital industry. We expect that with these changed concepts it will be a success story in the years to come for your Corporation.

In view of our mission of being one of the prime Power Sector Utilities in the North Eastern Region and our underlying efforts to consolidate our activities your Corporation is confident of meeting the emerging challenges implicit in a competitive and challenging environment. To achieve the desired output by the Company, we strongly believe that the people and technology are the primary resources and it will be our constant endeavour to continue with the programme of upgradation of technical skill and expertise, strengthening of the existing system from the identified lacuna along with the innovations in diversifications of the business environment.

I am glad to inform you that your Corporation is entrusted with the execution of quite a number of major hydro electric projects to be taken up during the ninth plan period for which activities for obtaining necessary statutory clearances are in progress.

Before I conclude, on behalf of myself and all of you, I would like to put on record the deep sense of gratitude to all the Government agencies, employees of the Corporation and all other agencies associated with us without whose active support it would not have been possible for the Corporation to maintain its pre-eminence in the field of power generation to the full satisfaction of the esteemed consumers.

Thank you,

Dated, New Delhi,

24th September, 1998.


Chairman & Managing Director


To The Members,

Your Directors have pleasure in presenting the 22nd Annual Report of the North Eastern Electric Power Corporation Limited, together with the statements of Accounts and Auditors’ Report for the year ended 31st March, 1998.


Performance :

NEEPCO earned a net profit including prior-period adjustment, of Rs.25.90 Crores during 1997-98 against Rs.9.97 Crores in the previous year, recording an increase of 159.78 %.

The sales including other income have increased to Rs.202.56 Crores during 1997-98 as against Rs.137.37 Crores in the previous year, recording a growth of 47.46 %.

Keeping in view the requirement of building up further strengthen base of Reserve of the Corporation to be able to become more attractive to the Investors in Bonds, the Board has approved a dividend of Rs.2.00 Crores to the Government for the year 1997-98. The profit of Rs.25.90 Crores has been appropriated in the accounts as under :

(Rs. in Crores)

  • I. Transfer to General Reserve 17.40
  • II. Proposed dividend 2.00
  • III. Dividend tax 0.20
  • IV. Balance carried over to

Balance Sheet 6.30

With the aforesaid transfers the accumulated balance in "Reserves and Surplus" of the Company amounts to Rs.170.50 Crores which includes Rs.0.13 Crores of Capital Reserve.

Capital Structure :

The authorised Share Capital of the Company has since been increased from Rs.1500 Crores to Rs.2500 Crores as per approval conveyed by Govt. of India, Ministry of Power vide letter No. 6/4/97 Hydel-II dt. May’22nd. 1998. The increase will be given effect during the financial year 1998-99.

Share Capital and Loan :

The total paid-up Capital and Loan was Rs.1612.13 Crores and Rs.1402.10 Crores respectively as at 31.3.98. Loan from Govt. of India including capitalisation of interest stood at Rs.803.27 Crores as on 31.3.98. An amount of Rs.27.50 Crores was raised as loan from Life Insurance Corporation of India and Rs.74.50 Crores raised through Bonds during the financial year 1997-98. The debt servicing is regular for L.I.C. loan and bonds. An amount of Rs.73.79 Crores of Interest and principal on Loan from Govt. of India was liquidated during the year. In 1996-97 the amount was Rs.36.16 Crores.

Capacity addition :

During the year 1997-98, 100 MW (50 X 2) of Kopili Hydro Electric-1st. Stage extension and 67 MW (33.5 X 2) of Assam Gas Based Power Project have been put into commercial operation.

Generation :

The actual Generation against the target during the financial year 1997-98 are as under :

Project Target(MU) Generation(MU)
Kopili HydroElectricProject &Kopili HydroElectric-1st.Stage ExtensionProject 111 2 MU 815.94MU
Assam GasBased PowerProject 600 MU 702.60MU


During the year 1997-98, Kopili and Khandong Power House of Kopili Hydro Electric Project have generated 447.18 MU against the target of 806.00 MU. Generation was less than target mainly due to low system demand and also due to shut down of one unit of Kopili P.H. of 50 MW capacity w.e.f. 4.12.96 to 31.12.97, on account of Stator earth fault.

The performance of Kopili H.E. Project – 1st Stage Extension was however better and against a target of 306.00 MU for the year 1997-98, the actual generation stood at 368.76 MU.

In Assam Gas Based Combined Cycle Power Project, two nos. Gas Turbine generating units with capacity of 33.5 MW each were put into commercial operation during the year 1997-98. The actual generation of the Project was 702.60 MU against a target of 600.00 MU.

The net earnings in terms of sale of power from Kopili H.E. Project was Rs.458.00 Crores and that of Assam Gas Based Power Project was Rs.277.00 Crores upto March’1998.



Both the Power Stations under this Project viz. Kopili Power Station and Khandong Power Station have been operational during the year 1997-98. Unit-I of Kopili Power House which was under shut down w.e.f. 12/96 due to Stator earth fault was rectified and made operational w.e.f. 1.1.98. Actual generation from the project during 1997-98 was 447.18 MU against the target of 806.00 MU.

As reflected in the report of earlier years, realisation of outstanding dues against sale of power to ASEB did not show any sign of improvement. Although an amount of Rs.68.43 Crores was received during the year 1997-98 including collection of Rs.55.93 Crores through Central deduction, the outstanding dues (excluding interest) stood at Rs.147.49 Crores as on 31.3.98. The Corresponding figure for the previous year was Rs.108.92 Crores. The total outstanding dues upto 31.3.98 to your Corporation against sale of power to the beneficiary states of N.E. Region stood at Rs.234.94 Crores as against the amount of Rs.177.38 Crores as on 31.03.1997.



All the major works, both civil and electrical/mechanical are going full swing. Construction of Diversion Tunnel have since been completed and river water diverted through this tunnel in Dec’96. At present construction of gates are in progress and will be completed by August’98, work of Water Conductor System is progressing satisfactorily. As on 31.3.98, 100 % boring of tunnel and fabrication of steel liners and erection to the extent of 86 % were completed. Erection of Gates is being expedited to match with the commissioning of U#1 in October’98. Construction of Coffer Dam upto EL 306 M has been geared up and average achievement of Rock-filling in Coffer Dam accelerated to nearly 90000 Cum per month. The Coffer Dam shall form part of the Main Dam. Construction of Power House as well as erection of electrical/mechanical equipments are in advanced stage of completion and no bottleneck is anticipated for commissioning of 1st Unit of the project in October’98. Construction of 33 KV/132 KV Switchyard is satisfactory and will be completed as per schedule.

During the year 1997-98, an amount of Rs.125.66 Crores was received against the project which included Budgetory support of Rs.64.16 Crores, Bond of Rs.49.50 Crores and LIC loan of Rs.12.00 Crores. For the year 1998-99, an amount of Rs.90.00 Crores has been allocated. While the anticipated cost of the project at Feb’97 price level is Rs.557.87 Crores receipt of fund upto March’98 stands at Rs.443.85 Crores.

The revised commissioning schedule of the project as under :

    • Unit # I – 10/98
    • Unit # II – 03/99
    • Unit # III – 07/99

All the activities required for the commissioning of Unit-I were progressing as per schedule. However, on 17.8.98 due to the incessant rain, there was a heavy landslide blocking the river Doyang. Due to this blockade the Power House was completely flooded inundating the Electrical/Mechanical Equipment installed and commissioned inside the Control room and Power House building. The water was subsequently pumped out and the equipments dismantled. The manufacturers representatives were called and assessment of the extent of damage is in process. Most of the sophisticated electrical equipments are required to be replaced. The matter is taken up with the Insurance Company and the respective manufacturers. This incident has delayed the schedule of commissioning which is presently assessed as 12(twelve) months for all the 3(three) machines.


The construction of Doimukh-Hoz road required for transportation of heavy consignments has been entrusted to BRTF. All major works of the project have since been awarded and are going on in full swing. The Diversion Tunnel was completed and river water diverted through this Tunnel. Boring of 10.27 Km long Main Tunnel has been completed except a length of 350 Rm in inclined portion. Boring of inclined Tunnel is progressing slow due to encountering of bad geology and excessive seapage of water. Concreting of Main Tunnel completed upto 37 %. Fabrication of Steel liner was taken up during the year and 28 % job completed. In regard to Diversion Dam, 82 % of excavation and 6 % of concreting was completed till March’98. Efforts are being taken to expedite the progress of concreting works. Construction of Power House Building was geared up and 65 % of concreting laid.

As regards Electrical/Mechanical works, D.T. Liner for all the Units was placed and concreted. Materials for Turbine and Generator received partly in phases. 2 Nos. of EOT Crane was received and erected at service bay. Generator transformers were received at Guwahati which will be transported through Doimukh-Hoz road after completion of the same by BRTF.

During the year 1997-98, an amount of Rs.111.68 Crores was received which included Budgetory support of Rs.71.18 Crores, Bond of Rs.25.00 Crores and LIC Loan of Rs.15.50 Crores. For the year 1998-99, the allocation is Rs.150.00 Crores for the project. The revised cost of the project at March’97 price level stands at Rs.1024.10 Crores. As on March’98, a total of Rs.699.65 Crores has been received for the projects. Considering the constraints faced in the execution of Main Tunnel, Diversion Dam and transportation of heavy consignments to the project, the likely commissioning schedule of the project has been revised as follows :

        • U # I – 09/2000
        • U # II – 12/2000
        • U # III – 03/2001


All the 6 Nos. of Gas Turbine Generating sets, commissioned by July’96, were under operation during the year 1997-98, and actual generation from the project was 703.00 MU with cumulative generation of 1568.44 MU till the end of March’98.

During the year under evaluation activities connected with the operation of Steam Turbine units were geared up. The works on all the Units are in an advanced stage. Unit-I and II are expected to be put in Commercial Operation on October’1998 and Unit-III in January’1999.

Out of the approved Cost Estimate of Rs.1347.57 Crores an amount of Rs.1347.42 Crores has been received till the financial year ending March’98. Since the project is nearing completion, the capital Cost Estimate for Rs.1468.80 Crores has been submitted.


All major works of the project had been completed and the units were synchronised on 5.3.97 and 17.6.97 respectively. Generation from the project was of the order of 367.40 MU till March’98.

During the year 1997-98, an amount of Rs.35.48 Crores was received. No Budgetory support is proposed for the project during the year 1998-99, as the whole fund has been received against the project till 31.3.98.


All infrastructural and major Civil and Electrical/Mechanical works of the project were almost completed by the end of March’98. Out of 4 Nos. of Gas Turbine Generating sets, the first three units were put to Commercial Operation in April’1998 and the last unit in August’1998.

Out of the approved Cost Estimate of Rs.294.06 Crores receipt of fund upto March’98 is Rs.261.98 Crores. For the year 1998-99, allocation is for Rs.34.52 Crores. For this project the completed cost is under preparation.


This project has been taken up as a Central Sector Scheme under loan assistance from OECF, Japan. The loan agreement to cover 85 % of project cost has been signed. PIB clearance of the project was accorded in January’98 at an estimated cost of Rs.448.19 Crores including IDC. The project work is being geared up after obtaining CCEA clearance. The allocation for the year 1998-99 is Rs.42.00 Crores.


With a view to have new projects for execution in future, it is proposed to continue/take up the following Survey and Investigations. In 1998-99, a provision of Rs.2.00 Crores has been kept to continue with the work of following investigation works.

        • Papumpam H.E.Project (100 MW).
        • Ranganadi H.E.Project Stage-II(100 MW)
        • Dikrong H.E. Project(100 MW)
        • Pakke H.E. Project(25 MW)
        • Upper Lohit H.E. Project(500 MW)
        • Dhaleswari H.E. Project(120 MW)


The following new schemes are being projected for execution during IXth Plan.

        • Tuivai H.E.Project (210 MW) – Mizoram
        • Kameng H.E.Project(600 MW)-Arunachal Pradesh.
        • Kopili H.E. Project-Stage-II (25 MW) – Assam.
        • Lower Kopili H.E. Project (150 MW) – Assam.


To have an edge over competitors and to make NEEPCO a more efficient Organisation reorganisation of the Corporation is continued keeping in view of the report on the subject made by the Indian Institute of Management, Lucknow and decision of the Board in its 93rd meeting held on 18.2.97.

The total number of employees as on 31.03.98 was 3060 against 3040 as on 31.03.97. 10 Nos of SC and 29 Nos. of ST posts have been filled up by recruitment during the year.


Special thrust was given in the area of Human Resources development during the year 1997-98.

Total number of 166 employees have been trained in different fields during the year which includes 103 executives, 13 supervisors and 50 workmen. Out of 103 executives trained during the year, 8 executives attended training programme abroad under various schemes.

NEEPCO has also started Human Resources Development Institute and to begin with, customised training in computer is being imparted to various categories of employees of NEEPCO


The relation between the management and the employees was harmonious throughout the year and no manday was lost on account of Industrial Relations problems. Various issues were discussed with the Unions and Associations across the table and settled amicably.

Promotion Policy & Rules, T.A. Rules, Annual Performance Appraisal Report system have been revised in order to remove restrictive and demotivating practices and to improve contribution and productivity of the employees.

The recommendation of 5th Pay Commission have since been implemented for the employees who are following CDA pattern of tpay scales in terms of Govt of India, Ministry of Finance, Deptt. Of Expenditure notification dtd. 30-09-1997.


Welfare/sports activities have been underten/participatedby the Cor[poration during the year under report.

NEEPCO Woman Welfare Association embers were nominated by the Management to participate in the 8th National meet of the WIPS Organised by the by the forum of Women in public sector, SCOPE held at Mumbai from 12th – to 13th February, 1998.

NEEPCO Cultural teram participated in the 1st PSU cultural meet on 29th March,1998 organise4d by the Power Finance Corporation, at NEW DELHI.


Kendriya Vidyalaya,KHEP,NEEPCO Ltd;has been upgraded to plus 2 stagstage.

Vivekananda Kendra has taken over from K.V.S.,RHEP and has started school upto Class-X at RHEP.Yazali.

Vivekananda Kendra has started school upto class II at AGBPP site,Tinsukia for educational session 1998-19999 which will eventually be upgraded by starting one higher class each year upto class IV.

Maharishi Vidyamandir haas stated KG school at AGTP site,Agartala for educational session 1998-1999.

NEEPCO has agreed to participate with IOC, Digboi in Delhi Public School, Digboi where 20 % of seats in each in each class will be reserved for children of NEEPCO employees.


NEEPCO Cricket Team participated in the 5th Power Sector Inter PSU Cricket Tournament hosted by BBMB at Nangal, Punjab from 14th. to 21st. November,1997. The team emerged runners up in the tournament.

NEEPCO Table Tennis Team participated in the 3rd Power Sector Inter PSU T.T. Tournament, New Delhi organised by Powergrid from 6th to 9th January’98 and bagged runners up in individual event.

NEEPCO Athletic Team participated in the First Power Sector PSU Athletic Meet organised by National Hydro Power Corporation Ltd., at New Delhi during 14th to 15th March’98. Silver Medal was bagged in 400 mtrs and Bronze Medal in 100 mtrs. and 200 mtrs. race.

NEEPCO participated in the Exhibition Cricket Match organised by Garampani Sports and Cultural Club played between Haflong District-XI and Umrongso-XI from 25th to 26th January’98 at Umrongso and NEEPCO was declared winner.


The Corporation has been implementing the Official Language Policy of the Govt. of India at its Corporate Office as well as Projects and subordinate offices. Efforts were made to issue the bilingual documents as referred to in Section 3 (3) of the Official Language Act. Annual Report and Project Reports were prepared in Hindi and English. NEEPCO T.A. Rules and NEEPCO Medical Attendance Rules have been translated into Hindi. Incentive Scheme as per the Govt. of India’s directives have been implemented. Officers and Employees were sent for Hindi training under the Hindi Teaching Scheme, Shillong. Employees of the Project sites were nominated to undergo Hindi training through correspondence courses.

Rajbhasha Hindi-Fortnight was observed during the year. Hindi Day/Hindi-week was also celebrated in all the Projects as well as subordinate offices and on the occasion various competitions were arranged and prizes were given to the winning participants. Rajbhasha Hindi workshops were also conducted during the year. At Corporate Office, employees are made acquainted with one Hindi word every working day under the programme of "TODAY’S WORD".

During the year, Inspection of Projects/subordinate offices was carried out to see the progress of proper implementation of Official Language Rules and Policy of the Government and required actions were taken to improve use of Hindi as Official Language.

NEEPCO has sponsored 10th. Akhil Bharitya Rajbhasha Sammelan organised by the Rastriya Hindi Academy, Rupambara at Shilling w.e.f. 02.10.97 to 04.10.97. NEEPCO was awareded "RAJBHASHA Shield" for its achievement in the implementation of Rajbhasha, Hindi in the Corporation. NEEPCO was also awarded the Second prize in the ‘Rajbhasha Pradarshani’ organised during the Sammelan. NEEPCO was also awarded third prize (Rajbhasha cup) organised by the Ministry of Power, Govt. of India during the year for achievement in the implementation of Rajbhasha, Hindi in the Corporation.


M/s. A.S. Biswas & Co., Chartered

Accountants, Shillong was appointed as Statutory Auditors for the year 1995-96. The Reports of the Statutory Auditors and comments of the Comptroller and Auditor General of India thereon are enclosed at Annexure-I & II and Management’s reply to C.A.G.’s observations at Annexure-III.

The review of the Comptroller & Auditor General of India on the Accounts of North Eastern Electric Power Corporation Ltd. under Section 619 (4) of the Companies Act are furnished at Annexure-IV.


Information as required under Section 217 (2A) of the Companies Act,1956, read with Companies (Particulars of employees) rules,1975 and Companies (Particulars of employees amended rules,1994 vide notificatrioon G.S.R.752(E)dtd. 17-10-1994 is enclosed at annexure-V.


As per directive of the Central Vigilance Commission, action plan on anti-corruptiion and vigilance measures have been taken.Complaints received are regularly monitored and were prima facieevidence were founundm, investigtion have been carriedout. Also, emphasis given on the aspect of preventive vigilance.


S/Shri C.V.Sarma,R..K.Sharma,P.K.Roy Choudhury, Darshan Singh and C.N.S.Nair have since ceased to be Directors of the Corporation. The Board of Directors placed on record the deep appreciation for the valuable service rendered by all the Directors.

Shirr S.B.Dey was appointed as Director(Technical) from 03-04-1996 S/Shri Vijoy Kumar,S.K.Srivastava, Liansanga, Pulak Deb, B.K.Bal,were appointed as Part-time Directors of this Corporation.


Particulars as required under Companies(Disclosures of Particulars in the Report of Board of Directors)Rules, 1988 and forming part of the Directors’ Report regarding Conservation of Energy/Technology absorption and foreign exchange earnings and outgo during the financial year 1995-96 is enclosed at Annexure-VI


The Directors acknowledge with thanks the guidance and help received from the Chairman of the North Eastern Council.The Directors are also grateful to the various Ministries of the Govt.of India, particularly the Ministry of Power, Ministry of Home Affairs, Ministry of environment & forest ,Department of Public Enterprises, Department of Economic Affairs, North Eastern Council, Central Electricity Authority, Central Water Commission, Central Soil & Materials Research Station, Geological Survey of India,Survey of India and theNorth Eastern Regional Electricity Board for their continued co-operation and assistance.

The Directors expressed their sincere gratitude to the Govt. of Assam,Meghalaya,Manipur Mizoram Nagaland, Tripura, Arunachal Pradesh for the co-operation and help extended by them.

Thanks are also due to the Bankers, the Statutory Auditors, the Commercial Audit Wing of the Comptroller and Auditor General of India and the Registrar of Joint-Stock Companies.

Last but not the least, the Directors also wish to place on record their high appreciation for the dedicated efforts made by all sections of employees of the Corporation to achieve the goals set for the Corporation.

For and on behalf of the Board of Directors,


Chairman & Managing Director

Dated, Shillong

The 26th Sept.1996.